DebtToEquity
Debt-to-Equity — Bhandari 1988
Leverage
Quick facts
| Factor ID | DebtToEquity |
| Display name | Debt-to-Equity |
| Family | Predictor |
| Category | Leverage |
| Direction | higher_expected_return |
| Status | supported |
| Paper | Bhandari 1988 |
| Source tables | — |
| Required fields | — |
| PIT required | yes |
| Coverage | 2010-04-27 – 2026-05-15 · 673,366 rows · 98.3% of panel |
Formula
debt_to_eqt
China adaptation
No adaptation note.
Direction-adjusted cumulative return
Return metrics
| Metric | Value |
|---|---|
| Months in sample | 193 |
| Monthly mean | -0.3438% |
| Monthly std | 4.1611% |
| Annualized Sharpe | -0.29 |
| t-stat (simple) | -1.15 |
| Hit rate (months > 0) | 48.7% |
| Last 12M compounded | -5.62% |
| Cumulative wealth (start = 1) | 0.434 |
Recent 12 months
| Month | L/S return | Cumulative | Names |
|---|---|---|---|
| 2025-05 | -1.62% | 0.453 | 5099 |
| 2025-06 | -2.11% | 0.443 | 5108 |
| 2025-07 | -1.54% | 0.436 | 5111 |
| 2025-08 | +1.54% | 0.443 | 5116 |
| 2025-09 | +1.29% | 0.449 | 5124 |
| 2025-10 | +0.11% | 0.449 | 5120 |
| 2025-11 | -1.24% | 0.444 | 5124 |
| 2025-12 | -1.65% | 0.437 | 5138 |
| 2026-01 | +1.13% | 0.441 | 5138 |
| 2026-02 | +2.69% | 0.453 | 5143 |
| 2026-03 | -2.61% | 0.441 | 5151 |
| 2026-04 | -1.59% | 0.434 | 5154 |
Known data issues
None recorded.
Notes
None recorded.
See also: Leverage family, Factor library, Factor returns.